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A History of Money and Banking in the United States: The Colonial Era to World War II

Page 53

by Murray N. Rothbard


  League of Nations, dominated by, 305

  lower wage rates in south England, 401

  new industries fare better, 401–02

  Norman as major financial figure, 442

  over-valued pound, 360

  price stabilizationists, 452

  recapture financial predominance, 358

  scolds U.S. for abandoning gold, 459

  secret central-bank conference, 444

  Strong and Morgan, 444, 447

  trade with Balkan nations evaporates, 470

  union strikes and, 430

  U.S. offer of debt relief, 452

  violation of gold standard rules, 429–31

  Great Depression, 209, 271–78, 290–313, 331–33, 332n, 423–26, 427n, 440–41, 450–57

  Green, William, 275, 448

  Greenbacks, 122–32, 147–50

  as wartime “necessity,” 131–32

  bank reserves, used as, 136–37

  depreciation of, 123–27

  first and “only” issue, 124

  Legal Tender Act of 1862, 123

  portraits on, 126n

  refused by banks, merchants, 127–29, 132

  state bank enthusiasism for, 129–30

  Greenback Party, 177–78

  Greenspan, Alan, 20

  Grenfell, Teddy, 369, 374, 378

  St. Just, Lord, 369

  Gresham’s Law, 47, 50, 52–53, 64–68, 67n, 76, 81, 104, 107, 110n, 111, 127, 222, 228

  Grew, Joseph C., 268, 380

  Grigg, Sir Percy James, 367n

  Griswold, John A., 148

  Grundy, Felix, 81n

  Gulf Oil, 267, 378

  Guthridge, Jules, 196

  H

  Hadley, Arthur Twining, 199, 215–17

  Hall, Perry, 330n

  Hamilton, Alexander, 62, 64–66, 72

  First Bank of the United States and, 68–70, 70n

  financial program of, 68–72

  Hamlin, Charles S., 217, 265, 372n

  Hammond, John Henry, 454

  Hand, James H., 454

  Hanna, Hugh Henry, 190–91, 196, 201–02, 226

  Hanna, Mark, 175, 189, 192, 201, 237

  Harding, William P.G., 265–66, 372

  Harding, Warren G., 238, 266, 283–84, 378–79

  Harjes, Morgan, 370n

  Harriman, W. Averell, 299–300, 300n–01n, 302, 307, 309

  power in New Deal and Democratic Party, 300

  Harris, Seymour E., 295

  Harrison, Charles Custis, 191

  Harrison, George L., 269, 274, 277–78, 287, 305, 335, 337, 417, 425, 427, 460–61

  Hawtrey, Sir Ralph G., 366–67, 390n, 392, 392n, 397–98, 442, 447

  Genoa Resolutions on Currency, 392–96

  Hazlitt, Henry, 486n

  Hearst, William Randolph, 457

  Heckscher, Eli, 398

  “Helicopter” model, 55n

  Hentz, Henry, 195

  Hepburn, A. Barton, 201, 205, 238, 242–43, 258, 449

  Hepburn v. Griswold, 152–53

  Herrick, Myron T., 237–38

  Hertz, John D., 301n

  High Lutherans, 174, 174n, 176

  Hill, James J., 195, 268n, 380n

  Himmelberg, Robert F., 281

  Hinckley, Robert, 335

  Hitler, Adolph, 33, 344n, 479

  Hoarding, 240, 296, 383, 462

  Hobson, John A., 210n

  Hollander, Jacob H., 220–21, 229–30, 233, 389n

  Homans, I. Smith, Jr., 148

  Homer, Sidney, 163

  Homo economicus, 34

  Hoover, Herbert Clark, 269–333, 415, 422–23

  Boulder Dam and, 333

  evils of hoarding, 296

  Fed and, 271, 275

  “Hoover Plan,” 273

  inflationary policy of, 271–78, 294

  intervention in recessions, 272

  recession intervention, 273

  Reconstruction Finance Corporation and, 288–94, 288n

  support for international monetary system, 452, 459

  Wall Street investigation, 312–13

  Hopkins, Harry, 300n–01n

  Horne, Sir Robert, 392

  House, Edward Mandell, 310

  Houston, David F., 282

  Howard, George, 330n–31n

  Hughes, Charles Evans, 266–67, 266n, 379–80, 379n

  Hull, Cordell, 344, 347, 471–77, 474n, 480

  Hume-Cantillon mechanism, 354

  Huntington, Collis P., 150

  Hutzler, Abraham, 230

  Hyperinflation, 25, 351n, 387, 407, 410–11, 410n

  I

  Ickes, Harold, 330

  Imperialism, 212, 219–22, 251

  consent of governed, 211

  dollar, 43, 437, 477

  economic benefits of, 213

  financial, 386, 443

  increased centralization of administrative power, 216

  sponsors of, 218

  surplus capital and, 208

  Indianapolis Board of Trade, 190

  Indianapolis Monetary Convention, 188–201, 204–07, 236, 252–53, 256

  Inflation, 285

  dollar, 487–88

  economics of, 272, 424

  general assets, as base of, 236

  nostrums, main sponsors of, 58

  paper money schemes, 50, 58

  rise in prices and, 69

  Treasury notes, to finance war, 75

  Insull, Samuel, 329–30

  International Clearing Union, 481

  International Harvester, 255, 263

  International Monetary Fund (IMF), 339n, 482–85

  International monetary order, 42, 232, 307, 389, 351, 352, 374, 483–89

  cheap money, seduced by, 425

  efforts to reconstruct, 356, 368, 437, 439, 465–67, 469, 476, 478

  monetary chaos and, 352, 431

  pre–World War I, 437–38

  restoration of, 356

  Interstate Commerce Commission, 184, 186

  Investment Bankers’ Association, 328

  Investment Bankers Code Committee, 329

  Investment Bankers Conference Committee, 329

  Iron and Steel Association, 148

  J

  Jackson, Andrew, 91–92

  against central bank, 92–93

  coinage legislation and, 104

  established branch mints, 107

  Specie Circular and, 98–99, 107

  unwarranted blame for 1937 panic, 97–98

  Jacksonians, 41, 90–93, 97, 104–07, 109, 111–14, 123, 135

  movement, 90–104

  economy, 94–96, 98–99, 103

  Era, 95, 114

  favored free markets, 91

  ideology of, 41

  libertarians, 91

  Jay, Pierre, 376

  Jefferson, Thomas, 65n, 92, 178

  Jeffersonians, 70, 136n

  as libertarians, 91

  Jekyll Island

  Fed bill drafted at, 253–54, 264

  Jenks, Jeremiah W., 199, 216, 223–24, 226, 228–29, 228n, 233, 389

  “Joachimsthaler,” 49n

  John Law’s Mississippi Bubble, 354

  Johnson, Joseph French, 204–05, 204n, 236, 249–50

  Jones, William, 85, 89, 92n

  K

  Kahn, Otto H., 448

  Kelley, William D., 148, 149n

  Kellogg, Frank B., 268, 380

  Kemmerer, Edwin W., 224, 233–34, 234n, 251–52, 389,

  Kendall, Amos, 91

  Kennedy, Joseph P., 309, 323–24, 324n, 330

  Kent, Fred I., 246, 249, 251

  Key currency country, 385, 396–97, 476, 483–84

  Keynes, John Maynard, 356, 362, 366, 367n, 368, 388–89, 405, 405, 478

  Keynes Plan, 481–82

  Keynesians, 295, 299, 331–32, 346, 362n, 367n, 487–89

  King, William, 335

  King Canute, 271

  Kleppner, Paul, 170n, 174n

  Knox,
Colonel Frank, 296

  Knox v. Lee, 153

  Kuhn, Loeb. See Banks

  L

  Laissez-faire, 92, 113n, 174–79, 183, 273–82, 283n, 304, 321, 331, 438–39, 447, 453

  Lamont, Robert P., 296

  Lamont, Thomas W., 251, 264, 269, 269n, 282n, 309–10, 311n, 313, 321n, 330n, 369, 416, 422n, 467

  Landis, James McCauley, 322–27, 325n, 327n, 329n

  Laughlin, James Laurence, 195, 200, 255, 277n

  League of Nations, 305, 356, 390, 397, 399, 415, 439, 441–43, 459

  Leffingwell, Russell, 282n, 287, 303, 372, 416, 432, 456–57, 467

  Lehman, Arthur, 303

  Lehman Brothers, 299, 301n, 302, 314, 324

  Lehman, Herbert H., 299, 302

  Lehman, Philip, 303

  Lehman, Robert, 301n

  Lehrman, Lewis, 41, 47, 187

  Leighton, George, 195

  Leith-Ross, Frederick W., 403

  Lend-Lease agreements, 479–80

  Lenin, Vladimir, 209–10

  capitalist imperialism theory, 209

  Leon, Rene, 299, 308

  Leviathan state, 259

  Libertarian, 91, 175, 177–78

  Liberty League, 347n, 478

  Limantour, Jose, 225, 228

  Lincoln, Abraham, 126n, 133

  Lodge, Henry Cabot, 176, 189, 209

  Loeb, Guta, 215n

  Loeb, Nina, 235n

  Loeb, Solomon, 235n

  London School of Economics, 366n

  Long, Breckenridge, 472

  Lopez, Robert Sabatino, 109n–10n

  Louisville Courier-Journal, 150

  M

  MacDonald, Ramsay, 404, 459

  MacVeagh, Charlton, 331n

  MacVeagh, Franklin, 198

  Magoon, Charles, 227

  Mahan, Alfred T., 209

  Maloney Act, 329

  Manifest destiny, yield to, 477

  Marburg, Theodore, 218

  Maria Theresa (silver dollar), 49n

  Marshall, Alfred, 39, 360, 389

  Marshall, John, 70, 70n

  Marshall Plan, 24, 30, 347n

  Martin, William McChesney, 327–28

  Marxism, 30, 185, 242

  Marxists, 171

  Massachusetts, 50–55, 74, 87, 96, 118

  paper money issues, 51–53

  return to specie, 53, 54–55, 55n

  McAdoo, William Gibbs, 265, 280, 311, 371

  McAveeny, William J., 298, 454

  McCain, Charles, 309

  McCloy, John J., 347, 472

  McCone, John A., 334n

  McCraw, Thomas K., 323n, 325, 328

  McCulloch, James W., 87n

  McCulloch, Hugh, 134, 151

  McCulloch v. Maryland (1819), 70

  McGarrah, Gates, 276, 412, 427

  McKenna, Sir Reginald, 362, 382

  McKinley, William, 175, 191–92, 237

  McKinley Tariff Act of 1890, 167

  McNary, Charles L., 457

  Mellon, Andrew W., 267, 269, 376–78, 415, 420–21, 423, 450

  Merchants’ Association of New York, 250–51, 254, 449

  Messersmith, George, 471

  Mexican Currency Reform Act of 1905, 228

  Meyer, Eugene, 278–301

  appointed Fed governor, 286

  Federal Farm Loan Board chief, 286

  head, Reconstruction Finance Corporation, 289

  most powerful financial force, 289

  opposition to German bailout, 286

  owner, Washington Post, 300n, 339–40

  War Finance Corporation and, 280–86, 288

  Miller, Adolph C., 266, 372n, 450

  Mills, Ogden L., 269, 274, 287, 289, 295–96, 422n

  Ministry of Reconstruction, 359

  Mises, Ludwig von, 11–19, 21, 34, 110, 344, 355, 471

  method of historical research, 11, 23, 25

  method of specific understanding, 13–16, 32–33, 39

  Mitchell, Charles E., 296n

  Mitchell, John J., 191

  Moffat, J. Pierrepont, 472, 479

  Moffett, James A., 308

  Moley, Raymond, 300n, 306, 464, 466

  Monetarist myth of Fed contraction, 275, 294

  of 1870’s, myth of, 154–55

  pseudo-gold standard and, 440

  Monetary imperialism, 218–19, 223, 228

  Monetary reform movement of 1896–1900, 188–204

  first monetary convention, 190–97

  passage, Gold Standard Act, 202–04

  second monetary convention, 198–202

  Monetizing debt, 75, 142

  Money

  brokers, as scapegoats, 79–80

  debasement, 50, 110n, 220, 222, 229

  precedent set for, 105

  demand for, 22, 203, 251

  fiat, 51–59, 73, 75, 82–83, 100, 122, 123, 131, 160, 186, 206, 232, 271, 298, 303–07, 352, 356, 358, 360, 396, 410, 421, 431, 453

  hard, 83, 90–91, 104, 112, 145, 151, 159, 178n, 186, 188–89, 231, 406, 441, 451, 484

  medium of exchange, 48, 105, 226, 352, 356

  paper money

  colonial, 50–58

  boom-bust economies and, 54

  first issue of, 51

  scarcity of money and, 52

  Revolutionary War and, 83, 59, 231, 354, 488

  purchasing power of, 22, 390

  scarcity of, 50

  supply increases v. productivity, 159 See also Greenbacks

  Monopoly

  government-imposed, 184

  license to issue paper money, 62–63

  redefined, 184–85

  Moore, Ernest, 415–16, 416n

  Morawetz, Victor, 247, 247n

  Moreau, Emile, 399, 407

  Morgan, Harry, 311n

  Morgan, J.P., “Jack,” 169, 183–84, 192–93, 195, 198, 207, 222, 235–36, 243, 245, 247, 251–52, 264–65, 268, 270, 276, 279, 292, 303, 311–12, 314, 316–18, 321–22, 324, 330–31, 368–71, 377–78, 380–81, 422, 427, 446–47, 450, 457, 467

  House of Morgan, 184, 263, 264, 282, 287, 297, 347, 368, 370, 386, 446

  associates and colleagues in England, concern for, 297

  Bank of England, association with, 270–72

  Banking Act of 1933, 316–17

  CFR and, 432, 346–47

  concordance and conflict, 42

  economic power destroyed, 315, 321, 330, 340

  influence of, 188–207, 209, 222, 235–38, 243–45, 368–69, 397, 415

  manipulation of Norman, 378

  Mellon and, 267, 378

  monopoly purchaser of goods, 370

  New Deal, assaulted by, 432

  political power and, 188, 268, 380

  preferred list of financiers and politicians, 311

  President Coolidge and, 266–67, 379–81

  President Hoover and, 269, 422

  Republican party and, 266

  return of, 343

  Rothschild of Vienna and, 427

  Strong and, 264–65, 270–71

  Theodore Roosevelt and, 263

  trade agreements against, 344–45

  twilight of power, 299, 306, 314–17

  Morgan, J.P., Sr., 264

  Morgenthau, Henry, Jr., 302, 335, 338–39, 344n, 346, 468, 477, 485

  Morrell, Daniel, 148

  Morrill, Chester, 338

  Morris, Gouverneur, 59

  Morris, Robert, 61–63, 62n, 63n, 68, 92n

  Most, Johann, 178n

  Mueles, Monsieur, 51n

  Müller-Armack, Alfred, 487n

  N

  Nash, Gerald D., 288n

  Nashville Banner, 191

  National Aniline and Chemical Company, 279

  National Association of Manufacturers, 281

  National Association of Securities Dealers (NASD), 32n9

  National Banking System. See Banking

  National Citizens’ League for the Creation of a Sound Banking System, 255

  National Civic Federat
ion, 264

  National Credit Corporation (NCC), 288

  National Grange, 298, 454

  National Monetary Commission (NMC), 244–46, 248–49, 251, 253–54

  National Power Policy Committee, 330

  National Recovery Administration (NRA), 328n–29n

  National Socialism, 30

  New Deal, 323, 343, 477–78, 480

  diplomacy, 344, 468, 471–73, 479, 484

  dollar nationalism and, 450

  foreign policy, 43, 437

  International Monetary System, 437

  monetary policy, 298, 433

  Morgan, assault on, 432

  New Dealers, 317, 321–22, 328, 331, 335, 338

 

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